The old adage that it's not the winning but the taking part that counts seems to be coming true for this year's X Factor finalists after Simon Cowell indicated all four acts could sign lucrative contracts.

While contestants in earlier series fought it out to win a once in a lifetime prize of a £1m record deal, the latest set of finalists – Cher Lloyd, teenage boyband One Direction, Rebecca Ferguson and series favourite Matt Cardle – are all tipped to be signed by record companies.

Mary Byrne, who controversially left the show after a last-minute rule change allowed the judges to put Lloyd through instead of allowing the public vote to decide, has already been signed by Sony to release an album next year.

"I haven't made a decision yet on whether I will give all finalists a record deal," he said. "But it is definitely a possibility. I will just have to see how they perform."

While a £1m contract might sound large, recording contracts have not increased with inflation. By contrast Cowell has seen his coffers overflow, with plans for a US version of the show imminent and a nationwide X Factor live UK tour kicking off in February 2011.

The last two series have seen both winner and runner-up snapped up by Sony Music, which also owns Cowell's own label Syco Music.

Last year's winner, Joe McElderry, and Olly Murs, his more critically acclaimed runner-up, both signed to Syco Music and Epic Records.

The Brit and Mobo award winning boyband JLS were runners-up in 2008 and have since gained three UK No 1 hit singles and released a US single. The 2008 winner, Alexandra Burke, also signed to Epic and has enjoyed chart success.

But being a winner is itself no guarantee of continued success. While 2006 winner Leona Lewis is now reportedly worth £11m, Leon Jackson, who won a year later, was dropped by Syco in 2009 after his single When You Believe reached No 3 in the charts.